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nChrist
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« Reply #1 on: March 20, 2017, 07:07:20 PM » |
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The Patriot Post Digest 3-14-2017
From The Federalist Patriot
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On paper these ideas of alternative sources sound fantastic, and perhaps in the decades to come they will be consistent and more affordable. But for now, oil, is still the cheapest, most reliable form of energy, and U.S. energy policy should reflect that reality.
In the summer of 2016, Rystad Energy, an oil consulting firm, released new data23 revealing that the United States has more oil reserves at an estimated 264 billion barrels than any other country in the world. This, for the first time in history, surpasses Russia at 256 billion barrels and Saudi Arabia at 212 billion barrels.
If we have so much of our own oil, it seems reasonable to ask, why are we still relying on the Middle East to provide this valuable resource? The short answer is that we only have approximately 22 billion barrels of proven reserves — that is, we only have the ability to tap into 22 billion barrels of oil due to technological limitations and regulations. The cost of extraction is another factor in calculating proven reserves, which is why “cheap oil” effectively reduces these reserves — cost exceeds profitability when oil is cheap.
Several years ago, oil production in the U.S. increased substantially with the use of new extraction technology. Hydrologic fracturing, or “fracking,” was the new means of production and Pennsylvania, North Dakota and Texas saw the largest increases in oil (and natural gas) production.
This new availability of oil posed a significant threat to the U.S.’s previous primary supplier of oil, Saudi Arabia. Before this expansion in extraction, the price for a barrel of oil was $115. Once the 21st Century American boom began, the Saudis, in an attempt to drive American innovators out of the oil business, lowered the price per barrel to $30, gambling their economy on the hopes that U.S. oil companies would run out of cash and close up shop, thereby forcing continued American reliance upon Saudi Arabian oil.
Their plan didn’t quite work. In fact, the Saudi economy is declining. “The International Monetary Fund in January slashed its forecast for Saudi economic growth this year to 0.4 percent from 2 percent,” Bloomberg reports24. “Net foreign assets, though still above $500 billion, are shrinking as the government uses savings to plug a budget deficit that reached $79 billion last year — $107 billion if delayed payments to contractors are included.”
What does all of this mean and why does it matter?
First, Saudi Arabia’s declining economy has weakened its strategic position in the Arab world, and that, combined with Barack Obama boosting Iran’s influence, has fueled instability in the Middle East.
Second, the U.S., because of the technological advances resulting in more American oil production, has transitioned from being a net oil importer to a net exporter of oil. In fact, the biggest onshore oil discovery in 30 years was just announced in Alaska. This, of course, is welcome news with its lower consumer fuel prices and more American jobs.
Finally, as we look forward, President Donald Trump’s administration has the opportunity to create sound energy policy. We should continue striving toward energy independence, but do so without paralyzing other economies in the world. Furthermore, the largest driver of cost in the energy sector is regulation. The Trump administration should push for deregulation across the board for those businesses who are seeking new, better and safer ways to tap into America’s vast resources. Unleashing the power of competition amongst American businesses and workers is what will drive success in the energy sector.
Our nation has a bright future when it comes to energy. The key is going to be harnessing that energy through the free market.
MORE ANALYSIS FROM THE PATRIOT POST
Is This the End of ‘Liberalism’ in the USA?25 — Militant leftist extremists have taken over a large swath of the Left.
Rolling Back the Administrative State26 — Trump’s proposed budget: More military, less for other agencies.
College Students' Fascist View of Tolerance27 — Most students think Muslims and Christians don’t have the same rights.
Kids Slammed for Wearing Patriotic Clothing28 — Des Moines North High School has a large refugee population.
Democrats Flip-Flop on Russia29 — A video montage of politics at its worst.
BEST OF RIGHT OPINION
Dennis Prager: Some on the Left Now Criticize the Students They Created30
Stephen Moore: Europe’s Lesson Teaches Us: Don’t Go Green31
Hans von Spakovsky & Grant Strobl: What the Media Won’t Tell You About Illegal Immigration and Criminal Activity32
For more, visit Right Opinion33.
OPINION IN BRIEF
Marvin J. Folkertsma: “There is a chasm separating our country’s elites from regular citizens, a matter that has been addressed increasingly by thoughtful observers of American politics. Although developments in our country have not reached the crisis levels that destroyed Rome, for instance, or France under Louis XVI, clearly the existence of vast, interconnected swath of overseers — actors and activists, professors and pundits, politicians and bureaucrats — who are insulated from reality and the consequences of what they say and do spells doom for America. Which means that any measures that force elites into the world of responsibility should be welcomed, regardless of preposterous screeches of protest such efforts would ignite. The normals among us fervently hope that such efforts succeed before it is too late, before our ‘land of the free’ succumbs to the tyrannies (soft or hard) that inevitably ensue when irresponsible elites lose all interest in preserving the country that made them so important in the first place.”
SHORT CUTS
Insight: “To be happy at home is the ultimate result of all ambition, the end to which every enterprise and labor tends, and of which every desire prompts the prosecution.” —Samuel Johnson (1709-1784)
Upright: “Nothing in Washington happens by itself; no policy ever self-destructs; it takes the political equivalent of a pile of plastic explosives to make something happen. Unless, of course, Obamacare suddenly (and inexplicably) were applied to members of Congress, Republicans and Democrats alike, their staffs, and everyone else on a government payroll. Then, before you could say ‘Affordable Healthcare,’ Barack Obama’s signature legislation would vanish overnight. In short, forcing lawmakers to obey their own laws would do wonders to clarify minds and speed up lethargic congressional processes.” —Marvin J. Folkertsma
Non Compos Mentis: “I hope that [Republicans] would pull the bill. That’s really the only decent thing to do. Numbers are important. They see the numbers. They should know how that transfers into people’s lives.” —Nancy Pelosi who is suddenly concerned about a health care bill’s harmful effects
Contemplations of an alternative journalist: “Is it as striking to you in the briefing room as it is to television viewers that an alternative universe is being proposed, alternative definitions are being trotted out in real time?” —Brian Williams
Village Idiots: “Nazism is alive in the West.” —Turkish President Recep Tayyip Erdogan
And last… “Why would anyone be offended by someone saying that ‘Western civilization’ is preferable to the alternative? No one is forced to come here. So why would any newcomer be insulted if his prospective home expected him to adopt Western values? That’s what we do here. To be American is an ideal.” —David Harsanyi
Semper Vigilans Fortis Paratus et Fidelis
Managing Editor Nate Jackson
Join us in daily prayer for our Patriots in uniform — Soldiers, Sailors, Airmen, Marines and Coast Guardsmen — standing in harm’s way in defense of Liberty, and for their families. |
